11 Major Central Banks Rally Behind Powell as Trump Escalates $2.5B Investigation—What It Means for Your Crypto

Central banks aren't just watching—they're coordinating. In a move that screams institutional alignment, eleven of the world's largest monetary authorities have thrown their weight behind Jerome Powell's policy framework. This isn't a casual endorsement; it's a unified front at a moment of peak political pressure.

The $2.5 Billion Question

While Powell garners global support, a separate storm brews. A massive $2.5 billion probe, now personally escalated by former President Trump, targets financial networks with unprecedented scope. The investigation cuts deep, bypassing traditional jurisdictional walls and aiming at capital flows some thought were invisible. It's a classic power play—regulatory muscle flexed for maximum theatrical effect.

Why Crypto Can't Look Away

Forget the old divide between digital and traditional finance. This dual-front news blast hits the same nerve: who controls the money? Central bank unity signals tighter, more synchronized global policy—often a headwind for risk assets. Meanwhile, a multi-billion dollar hunt through financial pipelines reminds every crypto whale and DeFi builder that the long arm of the law still gets longer.

The bottom line? When the giants of legacy finance move in lockstep and political figures turbocharge billion-dollar probes, the entire digital asset ecosystem feels the tremor. It's a stark reminder that in finance, the 'old guard' still writes most of the rules—they just occasionally use new pens. Time to check your exposure.

Powell Says Fed Independence at Risk as Allies Step Forward

The statement was signed by officials from the European Central Bank, Bank of England, Bank of Canada, Bank of Korea, Swiss National Bank, and several others, describing Powell as a respected colleague who has served with a clear focus on his mandate.

The show of support followed Powell’s unusually direct public remarks over the weekend.

On January 12, the Fed chair confirmed that the Justice Department had served the central bank with grand jury subpoenas and was threatening a potential criminal indictment related to his June 2025 testimony before the Senate Banking Committee.

Fed Chair Powell accuses Trump administration of using criminal threats to pressure rate cuts after DOJ grand jury subpoenas over renovation testimony, triggering bipartisan backlash.#Fed #Trump #DOJhttps://t.co/nKiwflcFWg

That testimony focused on cost overruns tied to the Fed’s multi-year headquarters renovation, which has ballooned to an estimated $2.5 billion, roughly $700 million over initial projections.

In a televised statement, Powell framed the investigation as retaliation for the Fed’s decision to keep interest rates higher than President Donald Trump has publicly demanded.

He said the threat of criminal charges stemmed from the Fed setting policy “based on our best assessment of what will serve the public, rather than following the preferences of the President.”

He also warned that monetary policy risked being directed by intimidation rather than economic evidence.

Trump denied any connection between the investigation and interest rate policy, saying that he had no knowledge of the subpoenas while criticizing Powell’s leadership, as previously reported by Cryptonews.

He described Powell as ineffective at both running the Fed and overseeing construction projects, but said he “wouldn’t even think” of using the Justice Department to pressure the central bank on rates.

The WHITE House has maintained that the Justice Department is acting independently.

Markets Watch Closely as Powell Investigation Raises Fed Independence Concerns

The investigation has intensified a political fight that has been building for months. In July 2025, Representative Anna Paulina Luna formally referred Powell to the Justice Department over alleged false statements related to the renovation.

Senator Thom Tillis, a Republican member of the Banking Committee, said he WOULD block confirmations of future Fed nominees until the matter is resolved, arguing that the episode now raises questions about the Justice Department’s own independence.

Democratic Senator Elizabeth Warren accused Trump of abusing prosecutorial power to bend the Fed to his will, calling the MOVE an attack on economic governance.

Market reaction was swift but measured, with the dollar weakening, U.S. stock futures slipping, and Treasury futures rallying as investors weighed the implications of sustained pressure on the Fed.

Powell’s chair term is set to end on May 15, 2026, though his seat on the Fed’s Board of Governors runs through January 2028.

Trump has already indicated he will not renominate Powell and has said he has chosen a replacement, with National Economic Council Director Kevin Hassett widely seen as the frontrunner.

Jerome Powell's time as Fed chair ends next year — and it's highly likely that his successor will be a crypto enthusiast#Bitcoin #USAhttps://t.co/UAyM2Qfypz

The episode fits a broader pattern of tension between the Trump administration and independent institutions.

Politico reported that Trump’s public calls for investigations into perceived adversaries have complicated past prosecutions and could weaken any future case against Powell, particularly given Trump’s long-running attacks on the Fed over rate policy.